Sabah Launches 400MWh Standalone BESS Programme, Marking a Major Step in East Malaysia’s Grid Transformation

Sabah has officially launched its third Request for Proposal (RFP3) under the Energy Commission of Sabah (ECoS), introducing two standalone Battery Energy Storage System (BESS) projects totaling 200MW / 400MWh.

Positioned at Segaliud and Kalumpang, the programme represents one of East Malaysia’s most significant utility-scale energy storage initiatives to date, signaling Sabah’s broader transition from renewable deployment toward grid resilience and system flexibility.

Two Strategic Standalone BESS Projects

• Segaliud: 100MW / 200MWh
• Kalumpang: 100MW / 200MWh

Each project will be developed under a 20-year Power Purchase Agreement (PPA), reinforcing Sabah’s commitment to long-term infrastructure planning and power system modernization.

From Renewable Capacity to Grid Flexibility

While previous large-scale solar programmes focused primarily on generation expansion, RFP3 introduces a stronger emphasis on grid-forming capability, system stability, safety compliance, and dispatchable flexibility.

By prioritising LFP-based, internationally certified BESS systems, Sabah is aligning with global energy transition trends where storage increasingly functions as strategic grid infrastructure.

Selective Bid Framework Encourages Local Capacity Building

The programme is restricted to Sabah State Entities (SSEs), either independently or through consortium structures.

Key structural requirements include minimum 30% SSE participation, foreign ownership capped at 49%, and minimum 20% local participation requirement.

This model reflects Sabah’s intention to balance local industrial development, international expertise, and strategic capital.

Opportunities for Regional and International Stakeholders

For global market participants, Sabah’s framework may create opportunities across technology provision, EPC contracting, OEM manufacturing, and strategic investment partnerships.

As project structures increasingly require local collaboration, trusted industry platforms and associations may also play a growing role in facilitating policy understanding, ecosystem alignment, and strategic market entry.

Sabah’s Emerging Role in ASEAN Energy Transition

Sabah’s BESS programme may serve as a regional benchmark for East Malaysia grid modernization, Borneo energy transition, island-grid resilience models, and ASEAN storage integration pathways.

Sabah’s RFP3 is more than a procurement exercise – it reflects a broader policy shift toward flexible, resilient, and locally anchored energy systems.